Greenbrier Companies (GBX)

Base salaries are determined for each executive based on his or
her position and responsibilities relative to other executive
officers and are, in some cases, determined pursuant to
negotiated employment agreements. We regularly monitor
competitive compensation rates in local and industry-specific
markets, and take that information into account in setting and
reviewing base salaries. Salary levels are typically reviewed
annually as part of the Companys performance review
process as well as upon an executives promotion or other
change in responsibility. Merit-based increases to salaries are
based on an assessment of the individual executives
performance.

Due to depressed macroeconomic conditions and continued softness
in the railroad supply market, in March 2009, the Company
implemented certain cost-cutting measures, including reduction
in base salaries for the Companys executive officers. The
salaries of the Companys executive officers were reduced
by a larger percentage than salaries of other Company employees.
Notwithstanding the fact named executive officers had formal
employment agreements with the Company, each of the
Companys named executive officers agreed to amend such
agreements to implement a voluntary reduction to his annual
salary during 2009. Mr. Furman agreed to a 50% base salary
reduction and each of Messrs. Bisson, Centurion, Rittenbaum
and Stuckey agreed to a 12.5% base salary reduction.

Base salaries are determined for each executive based on his or
her position and responsibilities relative to other executive
officers and are, in some cases, determined pursuant to
negotiated employment agreements. We regularly monitor
competitive compensation rates in local and industry-specific
markets, and take that information into account in setting and
reviewing base salaries. Salary levels are typically reviewed
annually as part of the Companys performance review
process as well as upon an executives promotion or other
change in responsibility. Merit-based increases to salaries are
based on an assessment of the individual executives
performance.

Base salaries are determined for each executive based on his
position and responsibilities relative to other executive
officers and are, in some cases, determined pursuant to
negotiated employment agreements. We regularly monitor
competitive compensation rates in local and industry-specific
markets, and take that information into account in setting and
reviewing base salaries. Salary levels are typically reviewed
annually as part of the Companys performance review
process as well as upon a promotion or other change in
responsibility. Merit based increases to salaries are based on
an assessment of the individual executives performance.

Base salaries are normally set after review of market data for
similar positions, and are reviewed approximately annually.

The compensation of the Companys President and Chief
Executive Officer William A. Furman is determined pursuant to
the terms and conditions of an employment agreement between
Mr. Furman and the Company, entered into effective
September 1, 2004. Pursuant to the terms of his employment
agreement, during the first eight months of fiscal 2006
Mr. Furman received an annual base salary of $550,000. The
Compensation Committee increased Mr. Furmans annual
base salary from $550,000 to $625,000 effective May 1, 2006.

The compensation of named executive officers Robin J. Bisson,
Senior Vice President of Marketing and Sales, and Mark J.
Rittenbaum, Senior Vice President and Treasurer, also is
determined pursuant to the employment agreements entered into
with those officers on May 11, 2006 and April 7, 2006,
respectively. Mr. Bissons employment agreement
provides for a base salary of $250,000 per year, and
Mr. Rittenbaums employment agreement provides for a
base salary of $235,000 per year, in each case as adjusted
annually by the Chief Executive Officer.